The North East has a long and proud tradition of manufacturing. In fact, it is the only region of the UK that is a net exporter in terms of manufacturing.
With a timeline that goes back to shipbuilding, steel works and all of this rooted in coal mining, the North East may feel like a place with more in the past than the future. But that’s not the case. Nissan and the related industries that have grown up around it may be the highest profile manufacturer in the region, but there is far more to manufacturing in the North East than this.
We lead the way in many industries, and the economic lull that surrounded the closure of the mines is lifted through modern manufacturing that resolves the current world issues. The Northern Powerhouse is an initiative that is designed to address the imbalance between London and the rest of the UK in terms of economic activity. But businesses are not waiting for this to happen before they move forward. There is a vibrant economy in the North East before the expected transport and infrastructure spending that this government policy will bring.
A changing economic climate
Business would be forgiven for sitting on its hands in the run up to Brexit. But uncertainty is made by the actions of people and business, rather than the negotiations of politicians. Business always has to cope with change, so the North East is just getting on with things rather than waiting for whatever Brexit may bring. We don’t let the grass grow under our feet here! Growth needs money. You may well have seen this slogan. It is quite right. We can’t build factories, open new plants and develop new products without some cold hard cash. Businesses across the North east and the rest of the UK have looked in many varied places for the money that will spark their growth. The traditional route of going to the bank may not be the best option for all. Some look to crowdfunding with all the benefits and risks that this can bring.
The government stance on this
Whereas the Northern Powerhouse is a long-term project that is taking time to crystallise, there are other ways that the government supports investment. Manufacturers across the North East could get their hands on some money back from HMRC with no strings attached. There is a scheme that is designed to help business invest in their future. And it has been around for years, with funding already promised for the next few years as well.
Usually if something looks too good to be true, we would advise that you walk away. But in this instance, there is a good reason to look more closely. R&D tax credits are a government initiative that have been out in place to promote investment. With Brexit on the very near horizon, the UK will need to compete on the world stage. They will need to compete with businesses from across the world for contracts. Much of this will need innovation in terms of products and services.
Why are tax credits here?
And this is exactly what R&D tax credits have been brought into existence to address. If you spend money solving problems for your business, then you are more than likely eligible for a tax rebate that averages at over £35k. This is money straight back into a business to use as they see fit. It is being used to create new jobs, support more R&D or to reward teams. There are no strings attached, so you can use it as you see fit. Manufacturing companies are prime for an R&D tax claim.
In all the surveys and information-gathering, the North East is always the area that comes out as the part of the UK that underclaims. We don’t get our fair share. We can often say that about our part of the country. But this time, there is something that can be done about it. R&D tax claims can be made by manufacturers (and other business sectors too) across the North East. The benefits are there to see. You don’t need to spend money to explore a potential claim just speak to us and we can look into it for you. Whatever your manufacturing business does, there is bound to be some part of it that is eligible for an R&D tax claim. Free money, back from HMRC. You should definitely look into that!
